Shore Bancshares, Inc. Reports 2025 Second Quarter Results

Core Viewpoint - Shore Bancshares, Inc. reported a net income of $15.5 million for Q2 2025, reflecting a growth from $13.8 million in Q1 2025 and $11.2 million in Q2 2024, driven by higher net interest income and noninterest income from increased mortgage banking activity [1][12][37]. Financial Performance - Net income for Q2 2025 was $15.5 million, or $0.46 per diluted common share, compared to $13.8 million, or $0.41 per diluted common share in Q1 2025, and $11.2 million, or $0.34 per diluted common share in Q2 2024 [1][12][37]. - The Company’s net interest income increased to $47.3 million in Q2 2025 from $46.0 million in Q1 2025 and $42.1 million in Q2 2024 [20][37]. - Noninterest income for Q2 2025 was $9.3 million, up from $7.0 million in Q1 2025 and $8.4 million in Q2 2024 [23][37]. - The efficiency ratio improved to 60.83% in Q2 2025 from 63.64% in Q1 2025 and 66.23% in Q2 2024 [25][37]. Balance Sheet Overview - Total assets decreased to $6.04 billion at June 30, 2025, down from $6.23 billion at December 31, 2024, primarily due to a decrease in interest-bearing deposits [4][18]. - The tangible common equity ratio increased to 7.88% at June 30, 2025, compared to 7.17% at December 31, 2024 [5][18]. - Total deposits decreased by $214.4 million, or 3.9%, to $5.31 billion at June 30, 2025, mainly due to a decline in interest-bearing checking deposits [15][18]. Asset Quality and Capital Ratios - Nonperforming assets to total assets were 0.33% for Q2 2025, slightly up from 0.31% in Q1 2025 [14][18]. - The allowance for credit losses was $58.5 million at June 30, 2025, remaining flat as a percentage of loans at 1.21% [12][18]. - The Company’s Tier 1 and Total Risk-Based Capital Ratios were 10.51% and 12.65%, respectively, at June 30, 2025 [5][18]. Loan Portfolio Insights - The Company’s loan portfolio increased by $55.6 million, with total loans reaching $2.60 billion in commercial real estate (CRE) loans at June 30, 2025 [4][6]. - The average loan debt-service coverage ratio for the office CRE portfolio was 1.8x, with an average loan-to-value (LTV) ratio of 48.41% [9][10]. Shareholder Value - Book value per share increased to $16.94 at June 30, 2025, from $16.55 at March 31, 2025, and $15.74 at June 30, 2024 [12][37]. - The Company maintained a dividend of $0.12 per common share [37].